Semiconductor maker AMD will supply its chips to ChatGPT maker OpenAI as part of agreement to team up on building artificial intelligence infrastructure, the companies said Monday.
According to a joint statement announcing the deal, AMD will provide OpenAI with its high performance graphics chips.
It calls for supplying 6 gigawatts of computing power for OpenAI’s “next generation” AI infrastructure, with the first gigawatt coming online in the second half of next year.
AMD also issued OpenAI with a warrant allowing the AI company to buy up to 160 million shares of AMD’s common stock, which amounts to about 10% of company. The warrant will vest based on two milestones tied to the amount of computing power deployed.
The agreement is a boost for AMD, which has been left behind by rival Nvidia, which has ballooned in value because its graphics processing chips are prized by AI companies.
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